The Superior times. [volume] (Superior, Wis.) 1870-1912, 1887-12-17
PRESIDENTS MESSAGE.

finances which I'M eratiyely demands imme-
dlate and careful consideration.
he amount OF mouey annually exacted
through the operation OF present laws, IRON the
industries and neces sites o. the people largely
exceeds tie sum lie essary TO meet the expenses
OF the government
When we eorsid,r that the theory of cur insti-
tlItons guarantees 10 every citizen the iull en-
- mcut OF all the fruits Ot his industry and en-
tefpfIse with only such deduction us ay be his
share towards the careful and economical main
lenance OF the government which protects him,
II Is plain that the eXaction OF more than this is
ina ienslble eXtostlOH and culpabia betrayal
of American ;e'rB1Ss and Justice This wrong
fahlCted uPon those IS 10 benr the burden of ma
lloIhi taxation. Ike t'i WrongS, mutlfatts a
brood OF eyd consequences The pubic treas
urY, which shOul ld only exist as a conduit con-
veylng the peoples t.ibute 10 its lesitimate ob
tect OF expenditure, becomes boarding place
for money needless:y Withdrawn from trade and
the pea pies use thus cTlppIng cur national en-
ergies, susI ending our coaHtfys development
preventing lny stm ut III productive enterprise
threatening financial disturbance aud inviting
sccemes of pubhc piunder
This condition o our treasury is not altogether
new; ana 1t has more than once of late been sub
mitttd to the people representatives i'll the Con-
gress, who oloEe can apply remedy. And yet
the situation Siil continues with aggravated in
tnts, more tHan ever pre- aging financial con.
vulslon and widespread disaster
Ii viii not 90 20 neg ,ect this situation because
lis dangers are not now pal lpably immlle lent and
apparent They exist none the less certainly,
and await the Unforeseen and unexpected oeca-
sion when suddenly they will be precipitated
upon us
On the Soth day OF June, 1881, the excess of
revenues over public expendi u es after comply
ing with the annual requ rement OF
THE SINKING FUND ACT,
was sl7, $50, 1881; duritg the year ended June
50. 1856, such excess amounted TO $40, ,l05 $3.50;
ard during the year ended June 30, 1887, 1t
reached the sum OF So, 81 ,Si9.54.
The annual cout ibUtous 10 the sinking fund
during he three years above specified, amount
lug 10 The sgglesate to Si38 o. ,5209i, and de-
Quoted aom the surplus as stated, were made by
calling in tor tnat purpose outstanding per
cent. bonds OF the government. During the six
months prior to June 80, 1897, the surplus reye-
nue had grown so lgrle hv repea, ed accImt Ia
uUns, AID 1t was feared the withdrawal o. this
eat sum OF money II eded by tue people wou
s. affect the business ut The country mat the sum
OF SO 66i, Ito OF such surplus was applied TO the
payment OF the principal an Interest OF the per
cent bonds still outstanding, and which were then
payable at the option of the government. The
precarious condition of financial affairs among
the people still needing relief, Immediately after
the SJth day OF June, 1857, the remainder OF the
per cent bonds thlu outstanding, amounting
with principal and interest 10 the sum of S,S77,
BOO, were called in and applied to the sinking
fund contribution for The current fiscal year.
NC, O,wlthsiSnding .Iese operations OF the Treas
ury Department representations OF distress in
business not only continued, but increased, and
absolute rerll seemed 1t hand. In these cireum.
stances the )ntribEtiOn to the sinking fund for
the current fiscal year was al oGce completed by
the expenditure OF ST., ,6si 2S3j5 in the purchase
ofgoyernmeut bonds not yet due bearing and
AZ per cent. interest, the premium paid thereon
averaging about y per cent. tor the former and
Per cent. for the latter, In addition to this he
interest accruing during the current year upon
the outstanding bonded Indebtedness of the gov
ernment was TO some extent anticipated, and
banks selected as deposjJores OF public money
were permitted to somewhat increase their de-
pOsis.
While the cxpedients thus employed, to release
TO the people the money lying idle the treas
ury, served to avert immediate danger
OUR SURPLUS EEyENUEs
have continued TO accumulate the excess for the
present year amour ting on the first day Of De
the sum OF eI5U-uojt on ne "yth OF June next,
at when date it is expected that this sum, added
to prior accumu atioDs, viii swell the surplus in
the treasury TO $4,000 0o0.
Tn re seems TO be no assurance that with such
Withdrawal from use of the peoples circulating
medium, our business community may not ID the
near future be subjected to the same distress
which was quite lately produced from he same
cause. And while the functions of our national
treasury should be few and simple, and while its
best condition would be reached, l believe, by
its entire dis onneCtion with private business in
terests yet when, by perversion Of its purposes,
II IDLY holds money useiesSy subtTacled from
the channels OF trade. there seems to be reason
for the claim that some legitimate means should
be devised by the government to restore in an
emergency, without waste OF extravaganza, such
money 10 its place among the people.
Ii such an emergency Gris Is there now exists
no clear and unCCubi cd executive power of
lief Heretofore the Tedemp ion of per cent.
bonds, which were payable at the option of the
government, has Afforded "a means for the dis
bursCment OF the excess OF our revenues: bat
these bonds have al! beeu retired and there are
no bonds outs anding the payment OF which we
have the right 10 ins. st upon. The contribution
to the sinking fund when faTn shes the Occl-
sion for expenditure in the purchase OF bonds ras
been already made for the current year SO 'iiat
there is no outlet in that direction In the pres
ent state OF legislation he o. ly pIeteuse OF any
existing executive power to restore, at this time,
any part OF cur surplus revenues 10 the people
by It's expenditure consists in the supposlliou
tnat the secretary of be treasury may nteT the
market ard purchase thg bones ct tEe govern
raj a %
agreed upon The only provision OF law from
which such
POWER COULD BE DERIVED
is 'ound in an ppIoPIiation bilI passed num-
Der of years ago; ana il is subject TO the suspi-
cioD that it was intended ~ temporary ana linn
Ited III Its application, instead of COnfefriug
continuing discretion and authority. No coudi-
tion ought TO existwlich would justify the grant
OF power TO single official, upon his judgment
OF its necessity, to withhold fIom or release to
lhe business o. me people, IN an unus ual manner,
money held in the treasury, and thus affect, at
his viii, the financial situation OF the country;
ana II 1t IS deemed wise to lodge in the secretary
Of the treasury the authority in tie present
junctG.e TO purchase bonds, il should be plainly
vested, and provided as lar az possible, win such
checks and l1mitat Ons VIII &C fine h oifi-
Glars right and discretion, and at the same time
relieve him from undue response bility.
In considering the question OF purchasing
bonds as mean OF restoring to circulation the
surplus money aCCumuiatii < il the treasury, 1t
should be borne in mind that premiums must OF
course be p9id upon such purchase, that thsTe
may be large part OF these bonds held as in
veStments which cannot be purchased at any
price. ana that combinations among holders who
are willing to SCH, may unreosonably enhance
The cost 0t such bonds 10 the government
Il has been suggested that the present bonded
debt might be reiunftd At less rate Of interest,
and the difference bCtV. The old and new Sc
curlty paid IN cash. thus finding use for tee sur
plus in the treasury, The success of this plan it
is apparent, must depend upon the yontion OF
the
HOLDERS OF THE PRESENT BONDS;
and it is not entirely certain that the induce
nent which must be offered them Houl3 result
in more financial benefit To tn government than
the purchase Of bonds, While the latter PROPOSE
tion would rc1uce tie principal oi the debt by
actual payment, instead OF extending it.
The proposition 10 dup0S the money held by
The government in banks throughout the country,
tor use by tie people IS, IL seems to me. exceed
iLg'y Objectionable in principle as estab .ishing
too close Te Ionship pytWttH me operations OF
the government ne tsuTy and the business of the
country AID 100 extensive q Cummiugiing Of heir
money, thus io=terllg an unnatural reliance in
private business upon public funds. If this
scheme should be adopted il should only be aOne
as ii temporary cG peCicnt To meet an urgent ne
cess1ty. Legislative sud executive effort should
generally be IN the opposite direction aud should
have tendency to divorce, as mul h and as fast
as can safely be done, The treasury department
from private enterprise. OF course, II Is not eN
pected that unnecessary and extravagant sppro-
priatlons will be made for the purpose OF avoid
ing the accumulation of
An ENCEss Of REVENUE.
Such expenditure, beside the generalization of
all just conceptions of public duty which i
tails, stimulates habit OF reckIess inproyideuce
not il the CaSt consistent with the mission of
our people or the nigh and benefiCent purposes
OF our government.
! have Geemcd il my duty TO thus bring to the
knowledge Gi my country ymeu, rs well as to the
attention OF their representatives, charged with
the responsibility % legislative relief The gray-
ity OF our financial situation. The failure Of
the Congress heretofore 10 provide against the
dangers which il was quite evident the very
nature OF the difficulty must CgS.srly produce,
caused "a condition OF financial distress aud APP
preheuSiUn since your last ado rnmsut, which
tsXcd 10 the utmost AL thc.HUthofiiy and expe-
dlenjs within executive control; ana these ep
psar now 10 he exhausted IL disaster results
from the continued inacliOn OF Congress, the
responsibility mus. rvst where il belongs.
Though the situation thus fgr considered is
frsughL with G5ugeg which should be fully real
Ized, aud thoug II presents features OF wrong TO
Tie pcople rs Well peril TO the country, it is
but result growing out oi perfectly palpable
AMI apparent caJSe, constantly reproducing the
same alarming circumstance CUngested Ua-
iioual treasury and depleted monetary coudi-
ton il the business Of the country. II need
hardly be stated that while the present situation
GcmaEsiS remedy. we can only be saved from n
iAc FEedlCament "a the future by the removal
o lis cause.